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Tuesday, October 2, 2012

Christmas Already?

Here’s the answer to the question, “Why have we seen stores like Wal-Mart setting up Christmas merchandise
displays in September?”

The longer the shopping season, the more likely consumers
are to buy more and more holiday items.

Let’s look at the details that motivate retailers to start
the season early

1.Competition

If you get a customer to buy from your store first, they are
no longer a potential customer for a competitor selling the same or similar
item.

2.Layaway

Christmas layaway (buy early and pay off your holiday purchases
over time; sometimes fees to use the program are involved) was basically a dead
concept in big-box retailing until it was brought back last year in response to
the weak economy and financially strapped shoppers. Best Buy, Kmart, Sears and
Toys ’R Us resurrected to the program and Walmart jumped in last October for
the first time since 2006. This year Walmart moved their layaway plan to 9/16
(from 10/17 last year) and is expanding the line of items available for layaway
from electronics and toys to include small home appliances, select sporting
goods and jewelry.

3.The Presidential Election

Typically the
holiday shopping ads begin to flood the airwaves in late October/early
November. With the November 6th election, retailers are worried that
campaign ads will steal the retail thunder.

4.The Uncertainty of the Job Market

Christmas sales historically
represent about 20 percent of annual retail activity and the retailers want to
encourage purchasing as soon as possible before economic negativity has an
unfavorable impact on holiday sales.

5.Crafters

People who make their own holiday decorations and who make
presents have to start now to have time to complete their project. Obviously
this is critical to craft stores like Michaels and AC Moore, but big box stores like Walmart have
departments that cater to this customer as well.

6.Supply

From Cabbage Patch Kids (1983) to Tickle Me Elmo (1996) to The Nintendo Wii (2006), every
year there are a few items that cause consumer mayhem when demand outstrips
supply and this history can be used to motivate early shopping. Some of the
toys predicted to be the biggies this year include One
Direction collector dolls, Wii U (Nintendo’ new two-screen gaming console), Doc
McStuffins Time for Your Check Up doll and the LeapPad2 Explorer.

NOTE: If you think it’s too early for Christmas, Hanukkah, Eid al-Fitr, Yuletide, Kwanzaa, Winter Solstice, and other celebrations, you have time ... typically there are four weekends between Black Friday and Christmas, but this year there are five.